The Charles Schwab Corporation (NYSE:SCHW) is rated as one of the most profitable financial stocks to invest in by Barclays analyst Benjamin Budish, who raised the price target to $125 from $120 after Q4 results. Q4 revenue was $6.34 billion, slightly below the consensus, with core net new assets at $163.9 billion and total client assets reaching $11.9 trillion.

For FY 2026, management expects an NIM of 2.85%-2.95% and adjusted pre-tax margins to expand into the low-50% range. Despite a 5.5%-6.5% increase in adjusted expenses, management anticipates further margin expansion. The recent acquisition of Forge Global is not included in the FY26 guidance.

President & CEO Rick Wurster noted record engagement across wealth management, trading, and banking at Schwab. Net inflows into Managed Investing solutions grew by 36% compared to 2024, while bank loan originations achieved another record year. Schwab, founded in 1971, operates in two segments: Investor Services and Advisor Services.

Read more at Yahoo Finance: Barclays Turns More Bullish on The Charles Schwab Corporation (SCHW) After Q4